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Team Pharmacy

MBA Competition 2018

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The Publix of the Future

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Team Pharmacy Analytics

Analyzed current Industry

Online Research

10 Publix Site Visits

Competitor Site Visits

Researched Online Data

Surveyed people

Drew Conclusions and Identified opportunities based on cost-benefit, convenience, awareness and growth potential

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Team Pharmacy

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The Publix of the Future

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5 years

7 years

10 years

Grab & Go Expansion

In-App Rewards

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Expansion of Grab & Go Foods

One of the fastest growing segments in grocery right now, especially with millennials
There are over 6 million millennials in Florida alone according to Census data, and they are the up and coming group for retailers to appeal to
Enhances the concept of convenience shopping

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The Future of Grab & Go

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The Future of Grab & Go

Recommendations:

Introduction of new concepts

Pizza Kitchen
Bring Hot Foods Bars and Salad Bars to more existing stores

For the future of grab and go foods, these are my recommendations:

First, it is important for Publix to continue to introduce new concepts to capture more of the grab and go market. An easy way to expand upon Publix’s current grab and go offerings and increase sales is to add a pizza kitchen to select stores. A pizza kitchen was recommended by 39% of our survey respondents as something they would like to see at Publix in the future. A Pizza kitchen is a concept that is easy to install, and Publix already has their store made pizza dough and fresh toppings already available in store. Harris Teeter, a store similar to Publix in core customer and product selection, already offers in-store made pizza from their deli departments. Pizza is widely popular, and the visuals and smell of pizza in the deli will only incentivise impulse buying of this new product. I recommend that Publix install Pizza kitchens at 6 new and existing stores to test the concept, using the South Florida, Tampa, Tallahassee, Atlanta, Charlotte, and Richmond markets for this test.

Also, Publix should bring hot foods and salad bars into more stores. In our survey, a salad bar and asian foods hot bar, both of which are concepts Publix has been testing for a while, also scored rather high in percentage for what shoppers want to see for prepared food offerings at Publix. While hot foods bars and salad bars have so far been reserved mainly for new stores and prototype stores (especially the 56M locations), Publix has installed these bars in older stores before (store #1150, for example). This is not a new concept, and Publix has many high volume older locations in which the coolers in the deli department can be easily rearranged to accommodate these new food bars. Hot foods bars are especially popular today, and are used extensively by Whole Foods and Wegmans, to name a few. They provide an easy way for one to grab lunch and dinner without having to cook, reinforcing the concept of convenience shopping.

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Make the Publix App More Convenient and Rewarding

Incentivize shoppers to download and use the Publix App, with perks for coming into the store.

91% of our survey respondents do not use the app.
Mobile payment and in-app bonus rewards are a way to incentivize shoppers to walk through the doors and buy more

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“Loyalty is More Than Just a Card”

The new idea:

Convenience

Skip the line - pay for purchases in-app
Makes Publix Grab-And-Go food options much more convenient

Reward

Digital punch cards (for example, “Club Pub Sub” - buy 10 subs get the 11th free)
Endowed progress effect: give shoppers bonus punches just for downloading the app, show how close they are toward the goal

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Strategic Partnership Dynamic

Acceptance Matrix	Score
Cost Benefit Analysis	MED
Return on Investment	MED
Sensitivity Analysis	HIGH
Added Consumer Value	HIGH

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The Publix of the Future

3 years

5 years

7 years

10 years

Grab & Go Expansion

In-App Rewards

CSA Program

Incubator Program

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Community Goodwill

“Involved as responsible citizens in our communities”

Question: How can we further enhance our brand image as a supporter of the community?

Current goodwill: March of Dimes, United Way

Answer: CSA drop off locations and Incubator program

Thought process:

Words associated: supportive of local community, high quality, fresher, environmentally friendly, trustworthy
Local foods sales directly to retailers were $2.3bn in 2016 from over 23,000 operators, CSAs accounted for $226mill (USDA)

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Community Supported Agriculture

I.E.: #202

R&B Farm-certified naturally grown produce

Liberty Farms-hydroponic farm, specialized produce

C.S.A. drop-off:

Relationship between member/farmer
Publix serves as “host” for products bought

Benefits:

Shows and reinforces support for the community
Potential partnership b/w local producer
Expands availability of high quality products

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Incubator Program

Allows local entrepreneurs to receive a space on Publix shelves for a period of selling time

Benefits:

Crucial feedback from customers and staff
Potential for permanent spot on shelves for commercial sale

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Strategic Partnership Dynamic

Acceptance Matrix	Score
Cost Benefit Analysis	MED
Return on Investment	MED
Sensitivity Analysis	HIGH
Added Consumer Value	HIGH

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The Publix of the Future

3 years

5 years

7 years

10 years

Grab & Go Expansion

In-App Rewards

CSA Program

Incubator Program

Merger Opportunity

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The March Across America

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Publix-Rouses Dynamic

Stores Employees Sales Per Unit

Publix 1200 193,000 $34.B $28.3M

Rouses 56 6,300 $1.2B $21.4M

Similarities

Business model

Family owned

Org. Culture

Community Sponsors

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Strategic Partnership Dynamic

Acceptance Matrix	Score
Cost Benefit Analysis	MED
Return on Investment	MED
Sensitivity Analysis	HIGH
Added Consumer Value	HIGH

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The Publix of the Future

3 years

5 years

7 years

10 years

Grab & Go Expansion

In-App Rewards

CSA Program

Incubator Program

Merger Opportunity

Strategic Partnership

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The Publix of the Future

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Publix-Partner Dynamic

Stores Employees Sales Per Unit

Publix 1200 193,000 $34.B $28.3M

C. Farms 600 7,200 $6.B $10.0M

Similarities Potential

Since 1939 Privately owned Real Estate Partner

Mission & Vision Publix Dairy

East Coast (11 states) Sub Counter

Goodwill Partnerships

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Strategic Partnership Dynamic

Acceptance Matrix	Score
Cost Benefit Analysis	MED
Return on Investment	MED
Sensitivity Analysis	HIGH
Added Consumer Value	HIGH

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The Publix of the Future

Team Pharmacy thanks you!

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